Legal Question in Business Law in Indiana
suing an LLC
We took on a client about two and a half years ago and contracted out the work for the client to a third-party. That third-party gave us a quote of 8 hours for a total of $600. When he gave us the program back, it was no where near completed and he said he spent twice as much time on it as he had quoted us. We paid him the $600 and according to him still owed a balance of $600. A couple of weeks ago we got a form saying we were to appear in small claims court. The form stated that the defendent was Seth McIntire (the president of the company). Since we are an LLC, is this order to appear in small claims court valid since the defendent is supposed to our company?? Any help would be greatly appreciated. Thanks in advance.
Vice President/CTO
2 Answers from Attorneys
Re: suing an LLC
Be certain to appear even if you feel you wish to challenge the named party as an improper party defendent to the action. Failure to appear will result in a default judgement. Also look for a copy of your agreement to determine if the party named as a defendent signed as an official reprensentative of the company or if the name appears alone without that designation. If it appears with out such a designation, such as president of xyz corp., it may be that the person can be held personally liable and a properly named defendent. Even if your challenge is good, he may be able to amend the claim or refile it with the proper information included.
Re: suing an LLC
I don't know if the person, Seth, is the designated person for service of process. In an abundance of caution, since you actually have notice, I would at least appear in court. There is no way you can challenge service via law and motion procedures. If they get a default there is no doubt that you lose.
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